Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) Short Interest Update

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) was the target of a significant decline in short interest in March. As of March 31st, there was short interest totaling 8,341,575 shares, a decline of 14.9% from the March 15th total of 9,803,957 shares. Based on an average daily volume of 2,401,807 shares, the short-interest ratio is currently 3.5 days. Approximately 24.5% of the shares of the stock are sold short.

Dave & Buster’s Entertainment News Summary

Here are the key news stories impacting Dave & Buster’s Entertainment this week:

• Positive Sentiment: Senior management still retains a meaningful stake — after the April 17 sale the SVP owns 38,547 shares valued at roughly $566k, which may reassure some investors that insiders retain exposure. SEC Filing
• Neutral Sentiment: Trading volume is elevated versus average (about 2.9M vs ~1.39M), indicating larger investor activity that can amplify moves in either direction; this may reflect short‑term trading rather than a fundamental shift. MarketBeat PLAY Page
• Negative Sentiment: Insider sale: SVP Steve Klohn sold 6,989 shares at an average $14.69 on April 17, a 15.35% reduction in his holdings — insider selling can be interpreted negatively by the market. SEC Filing
• Negative Sentiment: Zacks Research issued a string of downward EPS revisions across FY2027–FY2029 (Q1–Q4 and full‑year cuts) and maintains a “Strong Sell” rating — these analyst reductions materially worsen near‑term earnings expectations and are likely weighing on sentiment. Bear of the Day: Dave & Buster’s (PLAY)
• Negative Sentiment: Third‑party earnings forecasts/coverage: recent coverage (including FY2029 commentary) highlights lowered outlooks and continued analyst skepticism, adding pressure to the stock’s valuation and investor confidence. FY2029 Forecast Article

Insider Buying and Selling

In other Dave & Buster’s Entertainment news, SVP Steve Klohn sold 6,989 shares of the business’s stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $14.69, for a total transaction of $102,668.41. Following the completion of the transaction, the senior vice president directly owned 38,547 shares in the company, valued at $566,255.43. The trade was a 15.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.02% of the stock is currently owned by corporate insiders.

Institutional Trading of Dave & Buster’s Entertainment

Hedge funds and other institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC bought a new stake in shares of Dave & Buster’s Entertainment during the third quarter worth $27,000. Caitong International Asset Management Co. Ltd grew its stake in shares of Dave & Buster’s Entertainment by 616.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,942 shares of the restaurant operator’s stock worth $31,000 after buying an additional 1,671 shares during the last quarter. Leonteq Securities AG bought a new stake in shares of Dave & Buster’s Entertainment during the fourth quarter worth $42,000. Quadrant Capital Group LLC bought a new stake in shares of Dave & Buster’s Entertainment during the third quarter worth $104,000. Finally, AlphaQuest LLC grew its stake in shares of Dave & Buster’s Entertainment by 415.9% during the third quarter. AlphaQuest LLC now owns 8,094 shares of the restaurant operator’s stock worth $147,000 after buying an additional 6,525 shares during the last quarter. Institutional investors own 91.45% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Wall Street Zen downgraded shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research report on Monday, April 6th. Piper Sandler lowered their price objective on shares of Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating for the company in a research report on Monday, April 6th. Zacks Research downgraded shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research report on Thursday, April 2nd. Truist Financial lowered their price objective on shares of Dave & Buster’s Entertainment from $23.00 to $18.00 and set a “hold” rating for the company in a research report on Thursday, January 8th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $21.83.

Dave & Buster’s Entertainment Price Performance

Shares of NASDAQ PLAY traded up $0.04 during midday trading on Friday, reaching $14.28. 2,905,263 shares of the company were exchanged, compared to its average volume of 1,386,230. The stock’s 50-day moving average price is $13.88 and its 200-day moving average price is $16.13. The stock has a market cap of $496.07 million, a P/E ratio of -9.99 and a beta of 1.83. Dave & Buster’s Entertainment has a one year low of $9.61 and a one year high of $35.53. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 16.61.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last posted its earnings results on Tuesday, March 31st. The restaurant operator reported ($0.35) earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.74). The company had revenue of $529.60 million for the quarter, compared to the consensus estimate of $556.56 million. Dave & Buster’s Entertainment had a negative return on equity of 7.93% and a negative net margin of 2.32%.The business’s quarterly revenue was down .9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.69 EPS. On average, sell-side analysts anticipate that Dave & Buster’s Entertainment will post 2.52 earnings per share for the current fiscal year.

About Dave & Buster’s Entertainment

Dave & Buster’s Entertainment, Inc operates a chain of combined restaurant and entertainment venues designed to appeal to families, young adults and corporate groups. Each location features a full-service restaurant and bar alongside an arcade gaming area with ticket-based redemption, virtual reality experiences and skill-based games. Many venues also include multiple large-screen televisions and a sports bar atmosphere, catering to fans who wish to watch live sporting events in a social setting.

The company was founded in 1982 by David Corriveau and James “Buster” Corley, opening its first location in Dallas, Texas.